This is an interesting possibility:
I recently revealed that the so-called “BRICS+” countries will announce the creation of a new currency at its annual leaders’ summit conference on August 22–24.
This will be the biggest upheaval in international finance since 1971. It’s taking direct aim at the dollar.
Quite simply, the world is unprepared for this geopolitical shock wave.
It appears likely that the new BRICS+ currency will be linked to a weight of gold. This plays to the strengths of BRICS members Russia and China. These countries are the two largest gold producers in the world, and are ranked sixth and seventh respectively among the 100 nations with gold reserves.
One difficulty in considering the impact of the new BRICS currency on the dollar is that all dollar indexes compare currency to currency. But that’s meaningless since the dollar, euro and sterling could all suffer from a loss of confidence at the same time.
If gold goes from $2,000 to $10,000 per ounce, that is better understood as an 80% devaluation of the dollar: from 0.0005 ounces per dollar to 0.0001 ounces per dollar. That’s a collapse of confidence but you’ll miss it if you’re looking at euros or yen.
Those currencies will all be collapsing at the same time.
Yesterday Rachel and I were at the grocery store and noticed that canisters of Quaker Old Fashioned Oatmeal are now over $10 apiece.
We all know there are some serious problems with the dollar; however, its collapse has been prevented thus far by it being the global reserve currency, as well as being backed by the big stick of the US government.
Can you imagine money that is actually backed by something other than debt and empty promises? It wasn’t that long ago that it was. And it will be again.
If the BRICS+ nations are successful in creating a viable, non-weaponized alternative to the dollar, look out below.